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Cluster munitions at work
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last update: Dec 11, 2009
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printCluster Munitions producers - - international - location
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arms
description
Cluster munitions pose a serious threat to civilian populations during and after a conflict. Cluster munitions are designed to blanket a large area containing one or more targets. They can be fired by artillery and rocket systems or dropped by an aircraft; they spread dozens, or even hundreds, of submunitions or bomblets over an area the size of a football field. Distribution of submunitions over such a broad area results in a large chance of civilian casualties during and after the attack. Many bomblets or submunitions fail to explode on impact. They remain on the ground like landmines that kill and injure civilians long after the conflict has ended. Although 98% of cluster munitions victims are civilians, cluster munitions producers don’t have any problems attracting capital from financial markets. current status (Oct 28, 2009)
The third of December 2008 marked an important day for international humanitarian law. On that day, 94 countries gathered in Oslo to sign the Convention on Cluster Munitions (CCM), a Convention that categorically prohibits the use, production, transfer and stockpiling of cluster munitions. 100 countries have agreed to ban these weapons by signing the CCM. Financial institutions should avoid any involvement in the manufacture of these weapons. Credit to cluster munitions producers has been common over the years, and looks set to continue unabated if due attention is not given. Fortunately, parallel to the Oslo process, more and more financial institutions have recognised their responsibility to withdraw support for companies manufacturing cluster munitions. These financial institutions have banned cluster munitions producers from their investment portfolio. Many financial institutions have stated in public that they will disinvest from cluster munitions producers; some of them have already done so. Although some financial institutions have made an effort to disinvest from cluster munitions, many find it difficult to implement their policy or have no policy (yet) on investment in companies that produce cluster munitions. brief history
In February 2007 and after years of campaigning by Netwerk Vlaanderen,
the Belgian Parliament voted a law forbidding any investment in
cluster munition producers by Belgian financial institutions.
(“Financing a Belgian or foreign company active in production, usage,
repair, offer, sale, delivery, import, export or stocking of
submunition in the sense of this law, is also forbidden.”) The law also
instructs the Belgian government to produce a list of cluster munition
producers. Belgium is the first country banning investments in cluster
munitions. companies involved
GenCorp (USA): Aerojet, a fully-owned subsidiary of Gencorp, produces the cluster munitions for the ATACMS-missile of Lockheed Martin. Aerojet also produces the solid propellant rocket motor for this rocket. At least until 2004, Aerojet assembled BLU-97 submunitions and integrated them into the AGM-154 A Joint Standoff Weapon (JSOW-A). dodgy aspects
Using cluster munitions is a serious breach of International Humanitarian Law as it is impossible to distinguish between civilian and military targets, and causes disproportionate long-term civilian harm. Therefore cluster munitions stand out as the weapon category most in need of stronger national and international regulation. Cluster munitions pose a serious threat to civilian populations during and after a conflict. Cluster munitions are designed to cover a large area where one or more targets are located. Spreading the munitions over this area results in a large chance of civilian casualties during the attack. But these weapons also cause civilian casualties after the end of the armed conflict. The sub-munitions contained in cluster bombs or rockets have a certain rate of failure (dud rate). Following a cluster attack there will be many unexploded submunitions left behind over a large area. A mine field is created, with a great risk for civilians, for years after the conflict. At this moment cluster munitions have been used in 23 countries or areas. Recent use has been documented in amongst others former Yugoslavia, Afghanistan, Iraq and Lebanon. In the first world-wide research on cluster munitions victims, Handicap International revealed that nearly all recorded cluster munitions casualties are civilians, putting the figure at 98 percent. Twenty seven percent of these are children. Investing in a company is clearly an active and supportive effort to raise the capital that is needed to fulfil the plans this company has made. Any financial service delivered to a company by a FI is in fact an approval and a belief in the plans this company is making. Moreover it is a crucial, important and necessary support to the company and its projects and plans. Investing in a cluster munitions producer therefore is a choice to support the production of these civilian-killers, and is clearly choosing sides. On the other hand refusing to invest in cluster munition producers is also a clear choice. FIs that develop a policy to no longer invest in these companies are not willing to take responsibility for these kind of weapons and their use. They do not want to bear any complicity in the killing of innocent civilians. Investors in cluster munition production can be considered as being complicit in the unnecessary killing and maiming of innocent civilians by cluster munitions during and after a conflict. financial institutions involved
banks
ABN AMRO
- profile
ANZ
- profile
Bank of America
- profile
Bank of Tokyo Mitsubishi UFJ
- profile
Barclays
- profile
BBVA
- profile
BNP Paribas
- profile
Citigroup
- profile
Commerzbank AG
Crédit Agricole
- profile
Crédit Agricole CIB
- profile
Credit Suisse Group
- profile
Deutsche Bank
- profile
Goldman Sachs
- profile
HSBC Group
- profile
Intesa Sanpaolo
- profile
JPMorgan Chase
- profile
KBC
- profile
Korea Development Bank
Merrill Lynch
Mizuho
- profile
Morgan Stanley
- profile
Natixis
- profile
Royal Bank of Scotland
- profile
Scotia Bank
- profile
Société Générale
- profile
Sumitomo Mitsui Banking Corporation
- profile
UBS
- profile
UniCredit Group
- profile
Wells Fargo
WestLB AG
- profile
investment funds
Merrill Lynch
what must happen
Financial institutions should develop policies that exclude all financial links with companies involved in producing cluster munitions. Because any investment facilitates production, no exceptions should be made for third-party financial services, for funds that follow an index or for civilian project financing for a company also involved in cluster munitions. Policies should not be narrowed to refusing project financing for cluster munitions. Financial institutions should apply their disinvestment policy to all activities: commercial banking, investment banking and asset management. |
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